The $99 8g iPhone (just announced this week) can cost up to $499, depending on how far along you are in your existing contract. The new 16g iPhone 3GS; up to $599 and the 32g iPhone 3GS goes up to a whopping $699.

Of course, if you are an AT&T virgin walking into their store for the first time; then YOU get your pick of those same phones starting at the $99 price (with the standard two year contract).

We all know the drill; you get the cheap price with the contract. But there's something about this one that is just wrong. Why can't you just extend your contract out to the two years and get the same price as everyone else?

Let me get this straight; the reward for customer loyalty is a 500% markup in price? Does this sound right to you?

Did I mention that there's an $18 activation fee, as well, for swapping out your phone on top of paying the highway robbery price for the iPhone?

Also, here's the Twitter petition demanding AT&T give existing customers the same deal, with the understanding they are re-upping their contract to another two years from the day of the trade-in. (That one makes total sense to me!).